Brace Yourself: The Housing Market Might Get Worse in 2024! 🏠

🚨 Prepare Yourself: Buying a House Might Get a Lot Worse! 🏠💸

Hey everyone, I want to start off by apologizing for the audio quality in this video 🎙️. My wireless mic adapter broke, so the sound isn't great. I'll be getting a new one soon!

In this video, I dive into why buying a house might become even more challenging in the near future. Whether you're a current buyer or planning to buy within the next year or two, it's crucial to understand the factors at play.

🔍 The Main Factor: Inventory 📉

While interest rates are always a big topic, the number of homes available for sale (inventory) is a significant issue. Despite a slight increase in inventory recently, we're still only at equilibrium levels, not a buyer's market where you have plenty of options and negotiation power.

🏦 Why Aren't People Selling? 🤔

Many homeowners who bought in the last few years have locked in super low interest rates around 3-4%. This makes them reluctant to sell, as buying a new home at today's higher rates would drastically increase their payments. This phenomenon, often called being "house locked," is keeping many homes off the market.

🌐 A Look Around Orlando 🌴

By the way, I'm currently in Orlando, even though I live in Sarasota. Just visiting and checking out some local spots. Orlando is beautiful and has a lot to offer!

📉 Rate Cuts and Market Dynamics 📈

We are expecting at least one rate cut in 2024, with more possibly following in November or December. While lower rates might encourage some homeowners to sell, it could also lead to a surge in demand from buyers, quickly depleting the already low inventory and sparking another competitive market.

🏡 New Construction Slowdown 🚧

Another critical factor is the slowdown in new construction. Despite the demand for 4-5 million new units, only about 1.5 million will be built next year. This imbalance will continue to strain the market.

📩 Builder Incentives 🏷️

I recently received an email from DR Horton and Meritage Homes, offering great incentives like lower interest rates rather than price reductions. Builders prefer to keep prices stable to avoid upsetting previous buyers and instead offer financial incentives to make homes more affordable.

⚠️ Buyer Beware! 📊

If you're a buyer, keep a close eye on the market and track the inventory levels. The current equilibrium level is around 6 months of inventory. Once we hit around 12 months, it might be a good time to buy.

Stay tuned for more updates, and don't forget to like, comment, and subscribe for more real estate insights! 🔔